Continental to spin off ContiTech, focus on tyre business

Continental, a German automotive parts manufacturing company, plans to restructure its operations by making its ContiTech rubber and plastics part an autarkic entity.

This determination is portion of a broader strategy to refocus the institution arsenic a dedicated tyre shaper pursuing the projected separation of its automotive segment.

Continental said its enforcement committee is presently successful the preparatory phase, evaluating imaginable transaction forms for ContiTech's independency and establishing a timeline for the process.

A merchantability of ContiTech is considered the astir probable outcome, expected to hap aft the spin-off of the Automotive radical assemblage and the merchantability of the Original Equipment Solutions (OESL) concern area.

If approved, ContiTech could summation its independency by 2026, the institution said.

ContiTech is simply a specializer successful worldly solutions for concern sectors specified arsenic off-highway mobility, mining, construction, location and vigor management, and automotive.

The institution and generated €6.4bn ($7bn) successful income successful 2024 and it presently employs astir 39,000 people.

A carve-out of Continental’s automotive rubber products division, OESL, is already underway.

The OESL unit, employing astir 16,000 radical successful 16 countries, is seeking imaginable buyers and partners.

The restructuring inaugural is portion of Continental’s program to found its 3 radical sectors—Tires, ContiTech, and Automotive—as standalone companies.

Following these changes, Continental AG volition run exclusively arsenic a planetary tyre company.

Continental CEO Nikolai Setzer said: “Over the past 30 years successful particular, Continental has utilized targeted acquisitions and integrated maturation to physique up 3 beardown radical sectors successful their respective industries. These are present acceptable for independence.

“Today’s highly dynamic markets besides telephone for focused, agile and decisive action. Now is truthful the close clip to initiate the astir far-reaching realignment successful the company’s history. We are creating 3 strong, autarkic champions that volition execute their afloat maturation and worth instauration imaginable arsenic autarkic companies.”

The company’s tyre concern generated €13.9bn successful gross successful 2024 and employs much than 57,000 radical worldwide.

As a effect of the changes, the creation of Continental’s enforcement committee volition besides beryllium adjusted.

Effective 1 July 2025, Ulrike Hintze volition beryllium appointed arsenic manager of labour relations and enforcement committee subordinate for quality assets (HR) astatine Continental.

In summation to her caller responsibilities, Hintze volition proceed to pb the HR relation wrong the Tires radical sector.